How Do Chemical Products Distributors Position Themselves

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In today's competitive global market, chemical products distributors are not only facing the increasing compliance demand and digital problems, but also strive to improve their importance in the chemical value chain, so as to adapt their business model to the changing market environment. Under the theme of "voice of the future", the 2019 annual meeting of the European Association of chemical distributors (FECC) will be held in June in the seaside town of siches, Spain, to provide delegates with inspiration on all these topics. Michael reubold asked the president of FECC Neville prior and vice president Frank Schneider about the challenges facing the chemical distribution industry and how to deal with them.

Chemmanager: what is the current market trend of chemical products distribution and what drives the development of this trend?

Neville prior: the growth rate of the distribution market is still higher than that of the chemical industry. The driving force for this trend is still that manufacturers are becoming more aware of the value added that distributors can bring and hope ...
... to simplify their business models. As in the past, manufacturers tend to deal directly with large multinational customers, but the scale of customer transfer to distributors is growing. At present, we think that this is a sustained trend. Take Europe as an example, in this respect, we should catch up with Asia and America. Of course, this trend is not uniform within the scope of distribution. We see that the beneficial distributors either have assets to add significant value, such as laboratories, mixing capacity, repackaging facilities, etc., or have regional or global coverage.

What is your vision for the future of chemical distributors? Is their importance in the chemical value chain reduced or increased?

I believe this industry has a bright future and will continue to grow. Distributors and organizations like FECC continue to talk about the overall advantages they can bring to the chemical industry, and manufacturers are listening. Good companies want to simplify their business models, and distributors can allow complex manufacturing to do that. In addition, distributors have good market insight and broad market coverage, so as to provide better service for customers and clients. As always, the market is likely to be disrupted and the industry needs to understand and embrace the opportunities of emerging technologies. This is probably the most talked about topic among distributors now.

How do chemical products distributors position themselves in order to play a stronger role in the chemical value chain?

Frank Schneider: chemical dealers have proven that they are flexible in the way they do business. This is not a one size fits all approach, but each player needs to take a different approach. Each company must define and constantly review its core competencies and determine its own strategy. Chemical distribution has always depended on its creativity and preparation for the changing business environment, and the growth rate of the past few decades has established a reliable record. Flexibility, creativity, speed and service will continue to be key factors in success Therefore, the right talent and the right network are the key.

How does the chemical distribution industry prepare for this new or at least changed role?

Just having a competitive product is not good enough. Customers and principals are demanding more and more. Distributors must look at their organization and develop appropriate strategies, have the right people and invest in their business. They must adopt the latest technology where appropriate and ensure that their operations add value both internally and externally. They need to make sure that the "customer experience" is right and understand that future generations will have different requirements on how to communicate with them, how to buy, and how to find information. We need a closer partnership in technology and supply chain support. For example, how to use artificial intelligence? In addition, enterprises need to consider how to become better corporate citizens. The wider public is looking for ethical and responsible products, and our customers will be looking forward to us as well.